Alibaba Group (NYSE:BABA) Stock Price Down 1.5% – What’s Next?

Alibaba Group Holding Limited (NYSE:BABA) shares dropped 1.5% during mid-day trading on Friday. The stock traded as low as $97.48 and last traded at $98.08. Approximately 8,345,968 shares changed hands during trading, a decline of 27% from the average session volume of 11,392,898 shares. The stock had previously closed at $99.54.

Analyst Ratings Changes

A number of analysts have recently commented on BABA shares. Citigroup lifted their price target on shares of Alibaba Group from $190.00 to $193.00 and gave the stock a “buy” rating in a research note on Thursday, October 8th. Benchmark restated a “buy” rating on shares of Alibaba Group in a research report on Thursday, August 20th. Piper Sandler cut shares of Alibaba Group to a “hold” rating in a report on Thursday, October 8th. HSBC set a $170.00 target price on shares of Alibaba Group in a research report on Thursday, July 9th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $165.00 target price on shares of Alibaba Group in a research note on Monday, September 7th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, Alibaba Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $182.89.

Alibaba Group Trading Down 1.5%

The stock has a fifty day moving average of $109.66 and a 200 day moving average of $126.60. The company has a market capitalization of $244.00 billion, a P/E ratio of 23.75, a PEG ratio of 1.28 and a beta of 0.47. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.36 and a current ratio of 1.36.

Alibaba Group (NYSE:BABA) last released its quarterly earnings results on Friday, August 14th. The specialty retailer reported $1.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.68). Alibaba Group had a net margin of 7.00% and a return on equity of 4.79%. The company had revenue of $39.64 billion for the quarter, compared to the consensus estimate of $39.52 billion. During the same period in the prior year, the firm posted $14.75 EPS. The business’s revenue for the quarter was up 8.6% on a year-over-year basis. As a group, equities research analysts anticipate that Alibaba Group Holding Limited will post 5.76 EPS for the current fiscal year.

Insider Transactions at Alibaba Group

In related news, General Counsel Siying Yu sold 6,764 shares of the business’s stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $13.58, for a total transaction of $91,855.12. Following the completion of the transaction, the general counsel directly owned 613,965 shares in the company, valued at approximately $8,337,644.70. The trade was a 1.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Hong Xu sold 103,046 shares of the stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $13.68, for a total transaction of $1,409,669.28. Following the completion of the sale, the chief financial officer directly owned 406,450 shares of the company’s stock, valued at $5,560,236. This represents a 20.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 999,971 shares of company stock valued at $13,563,304. Company insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Alibaba Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hoey Investments Inc. increased its stake in Alibaba Group by 95.2% in the 1st quarter. Hoey Investments Inc. now owns 205 shares of the specialty retailer’s stock worth $26,000 after buying an additional 100 shares in the last quarter. Continuum Advisory LLC bought a new stake in Alibaba Group during the second quarter valued at about $28,000. GK Wealth Management LLC purchased a new position in shares of Alibaba Group in the third quarter valued at about $32,000. Latitude Advisors LLC purchased a new position in shares of Alibaba Group in the third quarter valued at about $43,000. Finally, Global Assets Advisory LLC purchased a new position in shares of Alibaba Group in the first quarter valued at about $56,000. Institutional investors own 13.47% of the company’s stock.

Alibaba Group Company Profile

Alibaba Group Holding Limited is a technology and commerce company founded in 1999 and headquartered in Hangzhou, China. It operates a broad digital ecosystem that connects consumers, merchants, brands and businesses through online marketplaces, technology platforms and related services.

The company’s China commerce businesses include Taobao, a consumer-focused marketplace, and Tmall, which enables brands and retailers to sell directly to consumers. Alibaba also operates 1688, a business-to-business wholesale marketplace.